EXPORT CREDIT.

Bay of Plenty Times, Volume LVIII, Issue 10322, 8 March 1930, Page 3

EXPORT CREDIT.

THE BRITISH SYSTEM. Among the measures adopted since the war with the object of developing Great Britain's export trade was an export guarantee scheme. In its present form it has been in active operation since the autumn of 1925, having superseded two previous plans which hud not proved altogether satisfactory. The monthly review of Barclay's Bank (London) January, deals with the finding of the committee, under the chairmanship of Sir Otto Niemeyer. appointed to report on the administration of the plan. It is stated that although the turnover of the export credits guarantee dcdepartment lias shown considerable ox ' pausion. it still amounts to only £4,000,000 a vear. The committee emphasises that “(he solvency of th e department must, he achieved." This should be done not so much by altering (he present rates of premium ’ or reducing expenditure, as by securing a sufficient amount of business to carry reasonable overhead charges, and bv the efficiency of the staff and administration. The committee does not consider desirable, the permanent. use of State credit for the benefit of the exporting firms whose aPPj 1 ' cations may be granted, but it thinks that sufficient time has not elapsed to Indicate the final form which such financial machinery should take, and it therefore recommends an extension of the term of the plan for years, from September, mill. The Review says that the plan can be regarded only as of an experimental character , but that the results already achieved suggest that it may prove in the future a valuable aid in the expansiou of British overseas trade.